Feasibility Study Update: Lady Julie’s Underground Mining Plan Raises Project Stakes
Magnetic Resources has significantly increased the gold resource estimate at its Lady Julie Gold Project to 1.75 million ounces, advancing plans for concurrent underground mining and an expanded processing plant.
- Lady Julie Gold Project resource updated to 28.11 Mt at 1.93g/t Au, containing 1.75Moz gold
- 75% of resource now classified as Indicated, up from 68%
- Scoping study supports concurrent underground mining producing 550,000tpa of higher-grade ore
- Processing plant capacity increased to 2.75Mtpa with new ball/SAG mill circuit
- Mining Proposal submitted for regulatory approval; feasibility study targeted for Q1 2025 completion
Resource Upgrade and Project Overview
Magnetic Resources NL has announced a substantial upgrade to its flagship Lady Julie Gold Project (LJGP) near Laverton, Western Australia. The updated Combined Mineral Resource Estimate now stands at 28.11 million tonnes grading 1.93 grams per tonne gold, containing approximately 1.75 million ounces of gold at cutoffs between 0.5 and 1.5 g/t. This marks a notable increase from the July 2024 update and reflects enhanced confidence in the continuity of mineralisation, particularly following recent deeper infill drilling at the Lady Julie North 4 (LJN4) deposit.
Importantly, 75% of the resource is now classified in the Indicated category, up from 68%, providing a stronger foundation for mine planning and reserve estimation. The project envisions three open pits, a carbon-in-leach (CIL) processing plant, and associated infrastructure, all progressing through an advanced feasibility stage.
Underground Mining Potential and Processing Plant Expansion
Building on the robust resource development below the planned open pits, Magnetic Resources has completed a scoping study exploring the addition of an underground mining operation. The study suggests that running an underground mine concurrently with the open pit could significantly enhance project economics. The underground operation is planned to produce 550,000 tonnes per annum of higher-grade ore, contributing to a combined annual output of approximately 150,000 ounces over an eight-year mine life.
To accommodate this increased feed, the processing plant design capacity is being upgraded to 2.75 million tonnes per annum. A key technical change involves replacing the originally planned multistage crushing and ball mill circuit with a more efficient ball/SAG mill circuit. This adjustment is expected to optimize comminution and processing efficiency, with detailed design and costing scheduled for completion by early February 2025.
Regulatory Progress and Feasibility Study Timeline
Magnetic Resources has submitted a Mining Proposal to the Department of Mines, Industry Regulation and Safety (DEMIRS) to support applications for two new mining leases and a miscellaneous lease covering the project footprint of 1,424 hectares. These regulatory steps are critical milestones toward project development.
The company aims to complete the feasibility study by the end of the first quarter of 2025, despite some late-stage changes to the study scope. Managing Director George Sakalidis highlighted that most background work is now complete, and the project scale and planning provide increased credibility and value to shareholders.
Technical Confidence and Future Exploration
The resource estimate was prepared by JORC Competent Person Mr. Mat Edwards of Blue Cap Mining, following the 2012 JORC Code standards. The geological model incorporates extensive drilling data, including over 3,000 reverse circulation holes and diamond drilling, ensuring robust confidence in grade continuity and geological interpretation.
Further drilling is planned to test deeper extensions of the ultramafic-hosted lodes at LJN4, which remain open at depth. The project sits within the prospective Chatterbox Shear Zone, a regional structure extending over 12 kilometers, offering potential for additional discoveries.
Outlook
With a strengthened resource base, an expanded processing plant design, and the potential addition of underground mining, Magnetic Resources is positioning the Lady Julie Gold Project for a significant step forward. The coming months will be pivotal as the feasibility study concludes and regulatory approvals advance, setting the stage for potential development decisions.
Bottom Line?
Magnetic Resources’ enhanced resource and underground mining plans could reshape the Lady Julie project’s economics, with feasibility results due soon.
Questions in the middle?
- How will the concurrent underground mining impact overall project capital and operating costs?
- What are the key risks in securing mining leases and regulatory approvals for the expanded project footprint?
- How might metallurgical variability across different lithologies affect processing recoveries and plant design?